Subscribers (paid or not) are more important to the magazines than anything else. Ad prices are based on the number of subscribers. If M&F can raise their subscription base by 25,000 units, they can justify raising ad rates to their advertisers. More importantly, though, is that when they are LOSING SUBSCRIBERS (particularly when audit season is near), they need to keep their advertisers happy. The only way to do that without lowering ad rates is to give away free (or nearly free) subscriptions.
Special "Pump and Dump" Ed